U.S. Treasury yields rise as investors await Fed summit. The yield on the benchmark 10-year Treasury jumped to 1.29% at 3:45 a.m. ET. The yield on the 30-year Treasury bond surged at 1.91%.
Fed Chairman Jerome Powell is scheduled to deliver his highly anticipated speech at 10 a.m. ET Friday. Meanwhile, investors expect the mechanics of plans to reduce $120 billion in monthly bond purchases at the July meeting. They geared up for the Federal Reserve’s Jackson Hole symposium on Wednesday morning.
Antoine Lesne, head of SPDR ETF Strategy & research, EMEA at State Street Global Advisors, said considering the improved economic data, he believed that the Fed could discuss tapering.
“We believe that rate hikes are still a long way away, definitely not a 2021 story, more of a 2022 story and that tapering will becoming more towards the end of the year,” Lesne said.
The Fed’s annual Jackson Hole symposium, gathering central bankers from around the world is set to kick off on Thursday with the theme: “Macroeconomic Policy in an Uneven Economy.”
There are no major data releases due out on Wednesday.
Auctions are set to be conducted on Wednesday for $30 billion of 119-day bills, $61 billion of 5-year notes, and $26 billion of 2-year floating-rate notes.